Transactions between two private limited companies having same directors
This query is : Resolved
Quick Summary
Udaya Chandran
(Querist)
07 September 2021
Bill was raised by "A", a private limited company, but the amount was credited to another private limited company "B". Both private limited companies having the same directors. Will it be an issue? Any solution? Or these kind of transactions can be continued?
CA R SEETHARAMAN
(Expert)
07 September 2021
Such receipts will be considered as gift and taxable in the hands of B.
Such transactions can't be continued.
Such transactions can't be continued.
Udaya Chandran
(Querist)
07 September 2021
Sir, thanks for the reply.
Can't it be considered as loan/advance and adjusted/paid in the future? Kindly clarify.
Can't it be considered as loan/advance and adjusted/paid in the future? Kindly clarify.
CA R SEETHARAMAN
(Expert)
07 September 2021
Loan/Advance should be received from company A.
Udaya Chandran
(Querist)
08 September 2021
Sir, thanks for the reply.
CA R SEETHARAMAN
(Expert)
08 September 2021
You are welcome.............
CS Divesh Goyal
(Expert)
09 September 2021
It should be considered as Loan and voilation of provisions.
Message likes :
1 times
Udaya Chandran
(Querist)
09 September 2021
@Divesh Thanks for the reply.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- EPF ECR NEW FILE SEP 17TH 2026
- Capital Gail Exemption Certificate
- Oct 2025 Invoices
- Import of Software Service.
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- Under marginal scheme
- Capitalgain tax purposes for valuation report compulsory
- GST on Renting godown to KFCSC for Storage of Raagi
- GST Audit whether Govt Companies are exempt?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
